SBI Agriculture Loan For Organic Farming And Organic Input Produce

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1. Capital Investment Subsidy Scheme For Commercial Production Units Of Organic Inputs Under National Project On Organic Farming

Objective of SBI's Capital Investment Subsidy Scheme For Commercial Production Units Of Organic Inputs Under National Project On Organic Farming is to promote organic farming in the country by making available the organic inputs such as biofertilisers, vermicompost and fruit & vegetable waste compost and thereby better return for the produce.

Eligibility: New as well as existing units (for expansion / renovation) engaged in the production are eligible under the scheme e.g Biofertilisers Unit, Vermiculture Hatcheries, Fruit and Vegetable Waste Compost Unit.

Pattern of assistance: TERM LOAN- Owner's contribution 25%, Subsidy from Government of India 25% subject to the maximum ceiling, Bank loan 50%.

Project cost: Project cost can include the cost of land and land development, civil works, equipments etc. The value of land should not exceed 10% of the project cost. The cost of land computed in the project cost can be reckoned towards the margin money required to be met by the enterprise.

Security: The security will be as per norms prescribed by RBI from time to time.

Repayment: 8 years with a grace period of 1 year for Vermiculture Hatcheries, 10 years with a grace period of 2 years for Biofertilisers Unit & Fruit and Vegetable Waste Compost Unit.

2. Financing Of Organic Farming

Objectives of Financing Organic Farming is to prevent degradation of precious arable land and pollution of water from the abuse of chemical fertilizers/pesticides/insecticides and to capture the branded domestic retail and export market opportunities.